I don't know anything about the reasoning behind the dropping of Dartino.
I can only comment on what it looks like to me, on the outside.
I always thought it was too premature to launch Dartino, when there was so many loose ends in the Dart platform.
And now that there's AoT compilation for ARM and that Fuchsia is coming, there's a lot of overlap.
Dartino runs on FreeRTOS I believe, which is pretty much what Fuchsia/Magenta are supposed to be.
Why not putting the Dartino team working on AoT compilation for Flutter/Fuchsia?
Then Dart 2.0 seems on its way. If it bring a lot of new features, that's a LOT of work.
First there's a lot of experimentation to do. Then the spec must be written. Then they have to update the VM, observatory, the whole SDK, the analyzer, dev compiler, dart2js, pub (Dartino would have been another one) and pretty much every library. And write tools for easy migration.
Then they will probably consult internal/external Dart consumers and maybe cycle back to experimentation.
So yeah, I'm pretty much happy about the team being refocused.
And I expect to wait at least 3 years for Dart 2.0 to be stable.
It's not that much if it has to wait for Flutter and Fuchsia to be production-ready to get visibility.